Can I Claim AOTC as a Dependent Student When Both Me and My Parent Paid for Tuition?

11 The American Opportunity Tax Credit (AOTC) can be tricky in dependent situations, but here's how it works: If you're claimed as a dependent on your parent's return, you cannot claim the AOTC on your own tax return - even if you paid for some of your educational expenses. Since your mom is claiming you as a dependent AND she paid for part of your education expenses, she can claim the AOTC on her tax return. She can claim the credit based on the qualified education expenses that were paid, regardless of whether she or you actually paid them. The IRS views this as if your expenses are considered to have been paid by your parent. The good news is that she can claim the full amount of qualified expenses (up to the $4,000 maximum for calculating the credit) - including both what she paid AND what you paid. The AOTC is worth up to $2,500, with 40% of it (up to $1,000) being refundable.

7 I went through this exact situation with my daughter last year. The IRS website was confusing, so I started using taxr.ai (https://taxr.ai) to help interpret all the tax documents and rules. It really helped clarify who could claim what. In our case, my daughter was my dependent, and we both contributed to her education. The tool confirmed I could claim the AOTC for ALL qualified expenses regardless of who actually paid them. We uploaded her 1098-T and my tax documents, and it guided us through the whole process. Saved us from missing out on nearly $1,500!

22 I want to follow up about that taxr.ai site - I decided to try it with my complicated dependent situation. I was honestly surprised at how helpful it was! My son earned just under the threshold that would make him independent, and the tool confirmed I could still claim him AND take the full AOTC credit. It flagged that I needed to document that I provided over 50% of his support, even though he paid part of his tuition. The analysis saved me from making a mistake that would have cost us about $2,000 in credits. Much better than the generic advice I was getting elsewhere.

9 For anyone struggling to get answers directly from the IRS on AOTC questions - I was in the same boat trying to figure out if my son and I could split the credit somehow. I tried calling for weeks but could never get through. I finally used Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. There's a demo of how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that since I claim my son as a dependent, I get the AOTC credit for ALL qualified expenses, even the portion he paid himself. She also explained that while the 1098-T helps, we should keep receipts for books and required course materials since those count too but aren't on the form.

13 I need to admit I was wrong about Claimyr. After my skeptical comment, I was still stuck with my AOTC question about my daughter who lives with me but my ex-wife pays some of her tuition. I decided to try it as a last resort. Got connected to an IRS rep in about 20 minutes (way better than my previous attempts). The agent explained that since my daughter lived with me for more than half the year and I provide more than 50% of her support, I can claim her as a dependent AND claim the AOTC - even for expenses my ex paid. Exactly what I needed to know!

19 Something nobody mentioned yet - there's an income limit for the AOTC! My parents made too much last year (over $180,000 as married filing jointly) and the credit started phasing out. They couldn't claim the full amount even though they paid my tuition and I was their dependent. Make sure your mom's income isn't too high or she might not get the full $2,500. The credit completely phases out at $90,000 for single filers and $180,000 for married filing jointly.

5 Has anyone run into issues with the 4-year limit on the AOTC? My parents claimed it for me for 3 years already, and now I'm in my 4th year of college. I'm worried because I took a semester off, so technically I might need a 5th year to graduate. Will we lose out on the credit for my final year?

One thing to keep in mind is that the AOTC can only be claimed for the first four years of post-secondary education, and the student must be enrolled at least half-time in a degree program. Since you mentioned you're living at home and attending college full-time, you should be fine on the enrollment requirement. Also, make sure your mom knows that only "qualified education expenses" count toward the AOTC - this includes tuition and required fees, plus required books and supplies. Room and board, transportation, and optional expenses don't qualify, even if they're education-related. The fact that you both contributed to paying doesn't complicate things as much as you might think. The IRS treats all qualified expenses as if they were paid by the person claiming you as a dependent. So your mom can claim the full credit based on the total qualified expenses, regardless of who actually wrote the checks.